Monzo IPO: what to know and how to buy shares

When will the Monzo IPO take place?

It appears that Monzo’s Initial Public Offering (IPO) is now fast approaching, with the digital challenger bank actively preparing for a potential listing as early as the first half of 2026. The company is currently working with Morgan Stanley on initial meetings with potential investors, with the formal appointment of IPO investment banking partners expected within months.

CEO TS Anil and Chairman Gary Hoffman are positioning the company for what could be one of the UK's most significant fintech IPOs in recent years. The timing will ultimately depend on market conditions in both London and New York, especially with US President Donald Trump's trade tariffs affecting global market sentiment.

While London is currently favoured as the listing location, the company continues to weigh both markets as it moves closer to going public. Arguably, the fintech may be trying to play both sides of the Atlantic to secure favourable conditions.

How to buy Monzo shares post IPO

If Monzo do end up listing in the UK, you can buy their shares from £0 commission with us., though a 0.7% forex fee may apply if the company lists in the US.

Other fees may also apply, please see our share dealing charges and fees.

You'll be able to invest in Monzo right away on the day of the listing.

1. Do your research on IPOs
2. Open a share dealing account or sign up on our IG Invest App.
3. Search for Monzo on our share dealing platform
4. Choose the number of shares or amount of money you wish to invest
5. Place your deal

When dealing shares, you own the stock and become a shareholder in the company. You'll profit if the share price rises above the point at which you bought, or potentially from any dividends paid. You could get back less than you put in.

You can also trade the Monzo IPO using leverage through a variety of products with us. This means you could gain or lose money quickly and could end up losing more than your initial deposit. This is higher risk and requires thorough risk management.

Read more about IPOs:

• Upcoming IPOs to watch
• How to trade or invest in IPOs
• Trading IPOs on our platform

What is Monzo valued at?

Monzo is targeting a potential IPO valuation of between £6 billion and 7 billion, representing a significant increase from its current £4.5 billion valuation. This would mark a substantial premium over the £4.1 billion valuation achieved during its primary funding round in early 2023.

For context, the fintech last raised over $600 million in H1 2024 in a funding round led by Capital G (Google's investment arm) among others, which established its current valuation framework. Morgan Stanley is expected to lead the banking syndicate for the IPO process.

The company is also considering a further sale of existing shares to allow early investors and employees to cash out, though this decision has not yet been made. This secondary activity would provide liquidity ahead of the public listing.

Key investors backing Monzo include Capital G, StepStone Group, GIC (Singapore's sovereign wealth fund), Tencent, Passion Capital, Accel, General Catalyst and Hedosophia. This investor base could provide strong institutional support for the upcoming IPO.

From a wider perspective, the Monzo IPO could be significant for the UK capital markets, which have seen a decline in major tech listings recently, as it would evidence market interest in technology-first banking platforms listing in London.

Monzo shares would likely be priced to compete with Lloyds Bank, somewhere in the 70p-80p range; however, they could be higher at launch if Monzo prefers to emphasise its tech credentials over the financial aspect.

What is Monzo’s business model?

Monzo is a UK based digital challenger bank founded in 2015 by ex-Starling Bank employees Tom Blomfield, Jonas Huckstein, Jason Bates, Paul Rippon and Gary Dolman. The company is now led by CEO TS Anil and Chairman Gary Hoffman, who previously salvaged Northern Rock after its 2008 nationalisation during the Global Financial Crisis.

The bank has scaled up rapidly, and now serves over 11 million UK retail customers, making it the 7th largest British bank by customer numbers. This means that one in five British adults are now Monzo customers.

The fintech also serves 600,000 business banking customers and employs approximately 4,000 people.

Monzo operates as a fully digital bank with no physical branches, requiring customers to bank solely through its app or website. In recent years, the company has diversified its revenue streams beyond traditional banking, now offering current accounts, business banking, instant access savings accounts, investment products, pensions products and specialised accounts for under-16s.

Monzo is now profitable, representing a spectacular recovery from the regulatory challenges seen in 2020. Competitors include Revolut and Starling Bank, with the competition for clients incredibly fierce.

Monzo has established Monzo Bank Holding Group and revamped its corporate structure to support overseas expansion while avoiding punitive capital treatment by British regulators. The company is also exploring international expansion and acquisition opportunities in the US and Europe, though no major deal appears to be imminent.

Why are there Monzo ethical concerns?

Monzo has successfully moved past prior regulatory challenges and enjoyed a strong recovery from a 2020 regulatory investigation regarding anti-money laundering compliance issues.

For context, the Financial Conduct Authority (FCA) previously launched an inquiry into the bank's activities for potential criminal breaches of anti-money laundering and financial crime regulations dating back to October 2018.

However, the bank has since resolved these issues and strengthened its compliance framework. As noted above, it's also restructured its corporate operations, establishing Monzo Bank Holding Group both to support international expansion and potentially as preparation for its IPO.

As with other digital banks, Monzo may be partially responsible for the broader industry trend of competitors closing physical branches, which can affect individuals who struggle with digital banking platforms.

Monzo-related investments

While you wait for the Monzo IPO, there are several alternative investing choices. Banks already listed, and on the FTSE 100, include HSBC, Lloyds, Barclays and NatWest.

While Starling and Revolut would perhaps be the closest analogues, neither are yet publicly listed (and like Monzo, their potential IPOs are hotly anticipated).

For investors seeking some diversification but within the Fintech sector, popular choices include the Xtrackers MSCI Fintech Innovation UCITS ETF, which includes Visa, PayPal and Mastercard among its top holdings with a reasonable 0.30% expense ratio. The Invesco KBW Nasdaq Fintech UCITS ETF is another common choice, but sports a higher 0.49% expense ratio. It holds MSCI, Interactive Brokers and Coinbase in its top holdings.

Monzo IPO summed up

• The Monzo IPO could occur as early as the first half of 2026
• The company is targeting a £6 billion to 7 billion valuation, up from its latest £4.5 billion valuation
• Monzo now serves over 11 million UK customers and 600,000 business customers
• The company is now profitable and led by proven management
• Morgan Stanley is expected to lead the IPO banking syndicate
• The arrival comes during renewed interest in global fintech IPOs and could help to revive the flagging London market